Service tax applicability - services rendered in Srinagar

[Asked by Guest]

A private limited company is in the business of construction. They have got a contract for some interior work of a hotel in Srinagar. This is a complete labour job and the same service is taxable when provided for in delhi. But as the service tax act is not applicable in srinagar is the company liable to charge tax or not. Services are to be provided on the site in srinagar only.

On the contract of some interior work of a hotel in Srinagar, the private company is liable to charge service tax at the rate of 8.5% under the General Sales Law of that State, which empowers the goverenment of that state to charge service tax under that law

AI Summary

Service tax applicability: on site interior construction services in Srinagar are taxable under state law, company liable to charge.
The company's on site interior construction services in Srinagar are taxable because the State's General Sales Law authorises imposition of a service tax, and the company is liable to collect that tax for services rendered at the site in Srinagar.